Full text: Report of the Trade Barriers Committee presented to the Preparatory Committee of the Economic Conference of the League of Nations

CUSTOMS (TECHNICAL QUESTIONS) 
The Trade Barriers Committee, subscribing to the proposes that such unification be approached gradually 
principle that a system of excessive customs tariffs can taking different classes of industry one after the other. 
only be destrimental to world restoration, and as a It recommends that the representatives of a given industry 
differentation on international effort must be taken meet with customs experts to study a common classification 
into account as one of the ruling factors of the com- for their particular industry, either on their own initiative 
mercial and economic policies of the various countries, or at the instigation of the International Chamber of 
is of opinion that certain questions not directly connect- Commerce. It feels that the International Chamber can 
ed with customs tariffs are important as throwing light be of service in promoting and facilitating such meetings ; 
upon the influence of customs duties on national and it recommends that a beginning be made with raw 
sconomy and on international relations. and should not materials and semi-manufactured goods. 
e neglected. ga to the question dr method Lo be Jollowed in 
. . . sub-divising customs tariffs, the Trade Barriers Com- 
The Trade Barriers Committee believes that the mittee believes that classification should proceed from 
number and height of customs tariffs hamper mnterna- the raw materials and follow the productions derived 
tional trade, and it is essential that Governments should from each class thus determined, taking into account 
be induced to consider the reduction of customs dues the degree of labour employed, that is to say, making 
by means of an extended system of mutual agreements. clear distinctions between raw materials, semi-manufactur- 
ed goods and finished products. Special groups would 
1. The Trade Barriers Committee recommends have to be provided for goods containing an admixture 
that the example, set by most countries, of making of several raw materials. Such goods should be subject 
statistical nomenclature agree with tariff classification to the duty levied on the matter from which they derive 
should be followed. their principal aspect and use. 
Further it recommends that statistical nomenclature 
should be made to accord with that of Brussels, and 3. The Trade Barriers Committee believes that any 
that the Convention be ratified as soon as possible by tariff classification or increase, equivalent to a discri- 
all nations which have not yet done so, taking into mination against specific countries, introduced in order 
consideration however the suggestion made by several to facilitate negotiations and very properly to obtain 
National Committees that another conference be called customs advantages in certain cases, is incompatible 
to improve the Brussels nomenclataire, and to make with the Committe’s ideal of a general levelling of customs 
customs classifications give more tangible expression tariffs. 
to the essential factors of the economic needs of each 
country. (e. g. make clear their needs of raw mater- 4. The Trade Barriers Committee is of opinion 
ial, of semi-manufactured goods, their demand for : ai fic duti I 
implements of labour, and their consumption of the a) That in principle specific duties are preferable 
most essential finished products). to ad-valorem duties. 
b) That ad-valorem duties give rise to continual 
2. The Trade Barriers Committee recognizes the great difficulties of application, that they facilitate covert 
advantages that would accrue to world business from the discrimination and certain fiscal ruses designed to increase 
adoption of a common tariff classification ; it does not indirectly official customs tariffs. 
underrate the great difficulties which stand in the way 
of such unification, but it believes that they are not The Trade Barriers Committee unanimously recom- 
insurmountable. The Trade Barriers Committee therefore mends that in any case the application of ad-valorem 
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